What Happens When Retirement. Benefits & Programs available to retired Johns Hopkins University Support Staff & Bargaining Unit Members

Transcription

1 What Happens When Retirement Benefits & Programs available to retired Johns Hopkins University Support Staff & Bargaining Unit Members

2 Table of Contents Introduction... 3 Becoming a Retiree... 3 Before You Retire... 4 Checklist/Timeline... 4 Retirement Resources & Assistance... 5 Pre-Retirement Seminar... 5 Retire Right from Johns Hopkins... 5 Personal Financial Counseling Sessions... 5 Retirewise... 5 Vendor Site Tools... 5 Bonafide Retirement... 6 Your University Retirement Package... 6 Your Support Staff Pension Plan... 6 About Your Benefit... 6 Forms of Payment... 7 Your Staff Voluntary 403(b) Retirement Plan... 7 Forms of Retirement Payment... 7 Required Distributions... 8 Investment Company Contacts... 8 Medical Coverage... 9 Eligibility... 9 Paying for the Coverage... 9 Turning Age Pharmacy Benefits Dental Coverage Important Policies to Consider Continuing Coverage through COBRA Other Benefits Sick Days & Vacation Flexible Spending Accounts Life Insurance & Dependent Life Personal Accident Insurance Long Term Care Insurance Short-Term Disability Long-Term Disability Tuition Grant & Tuition Remission Credit Union Social Security Office of Work, Life and Engagement PrimeTime News Retiree Account Osher Lifelong Learning Institute Library Privileges JHU Museums

3 Johns Hopkins Club JHU Sponsored Discounts Special Events & Discounts Disclaimer

4 I ntroduction Johns Hopkins University offers a wide variety of benefits and programs to support staff during their employment at the university. While some of these benefits will be discontinued upon retirement, others will continue throughout the retirement years. The information in this guide has been prepared for you, to assist in your planning for retirement. It describes the benefits that are available to you when you retire and answers some of the questions you may have about your future relationship with the university. Becoming a Retiree There is a distinction at the university between being eligible to take a retirement distribution from the university and being a retiree of the university. Here are the specifics. To become a retiree of the university you must leave the university in good standing and meet the following criteria: Be at least age 55 and have completed 10 or more years of continuous full-time service immediately prior to termination OR Have completed 30 or more years of continuous full-time service immediately prior to termination, regardless of age Note: A leave of absence from which an employee does not return to full-time service does not count toward satisfying the criteria. As a retiree, you are eligible for retiree Health Care (with or without a subsidy) as well as other community related perks offered through the Office of Faculty Staff and Retiree Programs. If you leave the university prior to fulfilling the requirements above, you are eligible for a distribution from the 403(b) plan, but will not be eligible for the other programs offered. Eligibility for each of our benefit programs is determined by the plan document. See specific plan details later in this guide. 3

5 Before You Retire There are several steps that you can take to make sure that the transition to retirement is as smooth and seamless as possible. We have outlined this information in the checklist below as a general guide to assist you. Checklist/Timeline Here is a quick checklist of contacts you may want to make: What To do Attend a Pre-retirement seminar Make an appointment to review your investment Join Retire Right Advise your department of your decision Contact Social Security Contact the Benefits Service Center to clarify your post-retirement benefits Plan the stream of payments from your retirement account Take the time to review Chapter 10 of our Health & Welfare Handbook concerning Retiree Medical & Dental coverage Review & confirm Medical carrier Review & confirm Dental carrier When Sessions are held in the Spring of each year. Employees age 55 and over are invited. The session covers a wide range of topics from financial decision making to navigation of the Social Security process. Our investment advisors are on campus weekly Retire Right workshops and individual counseling are available year-round. Learn more about the non-financial aspects of retirement planning As soon as possible, but at least 14 days prior to your intended date Prior to age 65 and at least three months prior to retirement if age 65 or older At least 30 days in advance of your retirement At least 30 days in advance of your retirement Before you make your final decision on your Medical & Dental Plans in retirement Two weeks prior to retirement Two weeks prior to retirement 4

6 Retirement Resources & Assistance As you plan your retirement from JHU, a good first step is an understanding of the resources and assistance that is available to you. Below is a selective list of those services that you might find valuable to your planning. Pre-Retirement Seminar JHU provides pre-retirement seminars for Faculty and Staff during the year. These one-day comprehensive sessions give you and a chance to focus on the JHU benefit plans as well as other retirement-focused issues involving Social Security, personal finance preparation and estate planning. Retire Right from Johns Hopkins Retire Right from Johns Hopkins is a holistic approach to retirement planning offered to faculty and senior staff through the Office of Work, Life and Engagement. This program is designed to help participants consider the non-financial aspects of retirement planning such as housing, health, relationships and lifelong learning. Whether you have a vague notion of activities you would like to engage in during retirement or a well-defined vision for your retirement years, this program can help you design a strategy for a successful retirement. The three-part program includes: 1. A one-hour seminar that introduces participants to the many issues involved in planning for retirement. Participants will leave this seminar with next steps such as talking with recent retirees and meeting with a financial planner to continue the process of developing their retirement vision. 2. An optional in-depth seminar (4-hour) that addresses the core areas of retirement planning in greater detail. Participants will have the opportunity to explore their vision for retirement and discuss how best to implement these visions in a group of supportive peers. 3. Individualized counseling from a licensed mental health professional to help develop a plan for retirement and discuss ways to eliminate barriers to achieving retirement goals. For more information, contact the Office of Work, Life and Engagement at Personal Financial Counseling Sessions Each week our financial vendors visit campus to offer personal financial advice and to answer your questions. This is a valuable opportunity to focus the vendor representative and the tools available to the on your needs. The schedule is posted on the Benefits Web site. Retirewise Retirewise is a program sponsored by MetLife focused on a series of four solutions-oriented, two-hour seminars that provide a comprehensive view of retirement. The program covers savings and investment during the working years and making employer and government benefits part of the planning process. Participants identify what a satisfying and meaningful retirement means to them and how to work toward achieving it. Vendor Site Tools Each of our financial vendors has state of the art modeling tools to assist you in assessing and projecting your financial needs at retirement. In preparation for the use of these tools, it is a best to collect information on all sources of funds so that you can get a picture of where you stand compared to your retirement goals. 5

7 Bonafide Retirement The Internal Revenue Service requires a bonafide retirement in order for you to gain access to your benefits as a retiree. This means that you are leaving JHU with no intention of returning to active service with the university. You will be asked to verify this when you meet with the Benefits Service Center to discuss retirement. If you intention is to continue working at JHU in another capacity or return to the university in the future, this would not be considered a bonafide retirement and you would not be able to access your retirement plan account. Your University Retirement Package You financial retirement benefits from the university are composed of two plans the Support Staff Pension Plan and the 403(b) Retirement Plan. Below is a brief description of both plans. Your Support Staff Pension Plan One of the building blocks to your retirement security is your support staff pension plan. The Johns Hopkins University Support Staff Pension Plan offers you: A monthly income for life with several choices in receiving it Ability to begin retirement payments as early as age 55 The right to future retirement income from the Plan after being vested Survivor benefits for your spouse or death benefits for your beneficiary, even if you die before you retire. About Your Benefit The monthly retirement income you'll receive from the plan is based upon a couple of important factors. These factor are used in a formula to determine the final amount that will be payable to you from the plan. Your length of service with the University. Your earnings and salary history while at the University. Your age when retirement income payments begin. You can start your pension as early as age 55. For an estimate of your projected monthly JHU pension benefit, contact Prudential at When you are closer to selecting an actual retirement date, contact the Benefits Service Center at and final pension information with your benefit options as of that date will be sent to your home. 6

8 Forms of Payment This is a brief description of the forms of payments available to you under the Staff Pension Plan. Forms of Payment Payments for You Payments after your Death Life Annuity Monthly amount payable for life At death, payments cease. Life Annuity with a Guaranteed Period of either 10 or 20 Years Life Annuity with joint Survivor benefit; Offer with continuing payments of 50%, 66 2/3%, 75% or 100% to a Spouse/Contingent Pensioner Lump Sum Reduced monthly amount payable for life. Reduced monthly amount payable for life. A payment representing the full value of the account is made If you die during the 10 or 20 year elected guaranteed period, payments will continue to be made to your beneficiary for the rest of the period. If your spouse/contingent pensioner outlives you, the selected percentage of the reduced pension will be continued for the life of your spouse/contingent pensioner. None The specifics on how you became a participant in this plan can be found in the summary plan description located in the Retirement section of the Benefits Web site. Your Staff Voluntary 403(b) Retirement Plan At retirement, you will need to make some decisions concerning your 403(b) Retirement Plan. You have these options: Begin to receive a distribution from the account Leave your monies invested in the JHU account, Transfer the account to another investment option or If you die before you start receiving benefits, your beneficiary may be able to choose whichever form(s) of payment he or she prefers. Request a Distribution You can start to receive your monies from your 403(b) Plan by requesting a distribution. You begin this process by contacting the investment company (see contact information below.) Leave your monies invested in the JHU account You have the option of leaving your accumulated 403(b) balance in the JHU Plan. At any later date you can take a distribution from the plan by contacting the investment company (see contact information below.) Transfer Your Account You can transfer your 403(b) in total or in part any outside investment option. You will need to contact both the company receiving the transfer as well as your JHU investment company to accomplish this. Forms of Retirement Payment Unless your investment in the 403(b) is in an annuity prior to retirement, in order to receive your 403(b) payment as an annuity or as periodic payments, you will need to first take a distribution from the plan. 7

9 Following the distribution, you should contact an insurance company about providing this form of a benefit. Required Distributions However, the IRS imposes the minimum distribution at the required beginning date of the first day of April of the calendar year following the calendar year in which you attain age 70 ½. Investment Company Contacts You may contact your investment company listed below for more information regarding distributions from the Plan at retirement. Investment Company Customer Service Web site American Century Fidelity TIAA-CREF VALIC Vanguard RESOURCES: The JHU Staff Voluntary 403(b) Retirement Plan The JHU Support Staff Pension Plan 8

10 Medical Coverage Having adequate health care coverage is an important consideration when you retire. The university offers retiree medical and dental coverage for eligible retirees and their eligible dependents the same coverage available to active employees and their families as long as the retiree meets certain eligibility criteria for age and service. Eligibility You are eligible for retiree medical and dental coverage as long as you: Retire from the university in good standing, Are at least 55 years old at the date of your retirement, and Have 10 or more years of continuous full-time service with the university immediately prior to your retirement. You are also eligible for retiree medical and dental coverage regardless of your age as long as you have completed at least 30 years of continuous full-time service with the university immediately prior to your retirement. Your spouse/same-sex domestic partner and benefits-eligible dependent children are also eligible for coverage as long as they satisfy the university s eligibility rules for dependent coverage. You can check dependent eligibility provisions. Paying for the Coverage Retiree eligibility provides you with access to the university health plans. The amount the JHU pays (the subsidy) is determined based on your age and years of service. This subsidy reduces your premium due for the coverage. However, the dollar amount of the university s subsidy remains constant from year to year during your retirement. For planning purposes you should know that the premium will adjust each year based on the expenses incurred by the plan for the prior year and you will be responsible for future increases in plan costs. Qualifying Percentage of Medical Subsidy Age Plus Service % of Medical Premium Subsidy Paid by JHU Less than 75 None participant pays full premium cost 75 25% 76 40% 77 55% 78 70% 79 85% 80 or more 100% of maximum subsidy The table below shows the maximum subsidy amount the university will pay towards medical coverage. The subsidy changes as the retiree moves from pre-medicare-eligible to Medicare-eligible. Keep in mind that, because the university s subsidy is a fixed amount, the retiree s share of retiree medical premium will grow over time as medical premiums increase. 9

11 Maximum JHU Medical Subsidy Pre-Medicare-Eligible Medicare-Eligible Individual $2,496 per year $1,812 per year Two Adults $4,992 per year $3,624 per year If you do not meet the criteria of the university s subsidized retiree medical insurance group plan but leave the university in good standing, are at least age 55 and have 10 or more years of continuous full-time service with the university immediately prior to termination, you may continue your medical coverage by paying the full cost of the group rate (no university contribution). Turning Age 65 When you, your spouse or same-sex domestic partner become age 65, they must enroll in Medicare Part A and B. Medicare will become the primary insurer and the JHU plan will become secondary. This means medical claims must be submitted to Medicare first, and those claims that Medicare does not cover are then submitted to the JHU medical plan. Pharmacy Benefits Your retiree Medical election includes participation in our pharmacy program through Medco Benefit Solutions for all plans with the exception of Kaiser Permanente. The Medco benefits structure is a three tier model involving generic, formulary brand and non-formulary brand drug alternatives. Link here to more information on our pharmacy benefits in our Health Plan Comparison chart. 10

12 Dental Coverage Current coverage ceases at the end of the month in which you retire. If you qualify as a JHU retiree, you and your eligible dependents may continue dental coverage by paying the full cost (group rate). If you wish to continue this coverage, complete the enrollment form within 30 days of retirement. Important Policies to Consider Here are some additional policies that pertain to your retiree Medical/Dental coverage: As a current participant in one of the university s medical plan options, at retirement you may elect any medical plan option available within 30 days of your retirement. If you have waived coverage in the university medical plan, you will have one opportunity to enroll in one of the university s available medical plan options. This must occur within 30 days of your retirement or within 30 days of the date you lose your alternate medical coverage. You may elect individual coverage if your spouse or same-sex domestic partner and dependent children are covered elsewhere. You will have one opportunity to enroll your spouse or same-sex domestic partner and eligible dependent children in the medical plan that you are enrolled in within 30 days of their loss of coverage from their medical plan. If you marry or enter into a same-sex domestic partnership, within 30 days of the marriage or same-sex domestic partnership, you will have the opportunity to enroll your new dependents in the medical plan in which you are currently participating. If your die, your covered spouse/same-sex domestic partner is eligible to remain on the group plan for his/her lifetime and covered dependent children can remain on the group plan until they no longer meet the plan eligibility requirements. If your surviving spouse/same-sex domestic partner enters into a new marriage/same-sex domestic partnership, he/she cannot add the new spouse/same-sex domestic partner to the plan. Continuing Coverage through COBRA If you or your covered dependents are not eligible to remain on the university s medical group plan for retirees, you and your covered spouse and children may choose to continue the medical plan under COBRA coverage. By law, if you become entitled to Medicare after making your COBRA election, you will not be able to continue benefits under COBRA [Confirm]. However, your covered spouse and children will be eligible to continue COBRA coverage as long as they continue to meet all eligibility requirements. COBRA information and enrollment instructions will be sent to your home address upon termination of employment. RESOURCES: Health & Welfare Handbook- Chapter 10 Medical and Dental Benefits for Retirees 11

13 Other Benefits There are other benefits that were a part of your active employee coverage which will be impacted by your retirement. Here is a brief look at what will happen. Sick Days & Vacation Staff who retire at 55 years of age or older and have at least 10 years of continuous full-time or part-time university service, immediately prior to retirement, can convert accrued, unused sick leave in excess of 45 days to cash payment. The maximum number of sick leave days that can be accrued is 90 days and the maximum number that can be converted to cash payment is 45 days. Staff will be paid for unused, accrued vacation days. Flexible Spending Accounts When you retire any money you have in a flexible spending account can still be used for expenses incurred prior to the date your participation in the plan ends. If you leave the university in good standing, you may continue to contribute to the health care flexible spending account, for the remainder of the calendar year, through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). COBRA information and enrollment instructions will automatically be sent to you at your home address. Life Insurance & Dependent Life Current coverage ceases at the end of the month in which you terminate your full-time employment. You are eligible to convert all or part of this coverage to an individual policy within 31 days by paying the full premium directly to the insurance company. Complete the conversion form to continue this coverage. Personal Accident Insurance Current coverage ceases at the end of the month in which you terminate your employment. You are eligible to convert this coverage to an individual policy within 31 days. Conversion is available until age 80. Long Term Care Insurance When you terminate employment, salary deductions for this benefit will cease. You will be billed directly by CNA. You may call CNA at for further information. Short-Term Disability Current coverage ceases on the date your full-time employment terminates. Long-Term Disability Current coverage ceases on the date your full-time employment terminates. 12

14 Tuition Grant & Tuition Remission If you qualify as a JHU retiree, you are eligible for the Tuition Grant Program and the Tuition Remission Program. For more information on these programs visit Education Assistance or call Credit Union When your employment terminates, you may continue your Credit Union membership. If you are not a Credit Union member when you terminate and you qualify as a JHU retiree, you may become a member even after your employment ends. Payroll deductions from JHU will, of course, cease after your employment ends, but you may have a direct deposit from an outside source coming to the Credit Union, e.g. Social Security benefits. Social Security The Social Security Administration recommends that you apply for your Social Security benefits at least three months before you plan to retire. You can apply at any Social Security office. If you retire before age 65, you should contact Social Security two or three months before you OR your spouse turns 65 to arrange to start Medicare health insurance protection. If you will retire after 65, you should contact Social Security to arrange for Medicare two or three months before you retire. Social Security retirement checks can be paid as early as age 62 and normal retirement can be as late as age 67. If you elect to receive your Social Security payments before your normal retirement age, the payment to you is a reduced amount since it would be received over a longer period of time. RESOURCES: For more information on Social Security For more information on Medicare 13

15 Office of Work, Life and Engagement You are entitled to various other benefits if you qualify as a JHU retiree. The Office of Work, Life and Engagement delivers these programs to all retirees. Here is a quick summary. PrimeTime News You will receive a quarterly newsletter which features even announcements, news, updates on retiree benefits and services; and other happenings at JHU. Retiree Account Retirees who are interested may establish and maintain a JHU retiree account. For instructions, visit Osher Lifelong Learning Institute You are invited to become a member of the Osher Lifelong Learning Institute at Johns Hopkins, which provides opportunities for intellectual enrichment and rewarding cultural and social opportunities. For more information, contact or visit osher.jhu.edu. Library Privileges Retirees have privileges at the Welch Medical Library and the Sheridan Libraries. Some of the services offered require a photo ID or JHED ID. For more information about the services provided, contact the libraries Welch Medical Library: online or call MSE Library: online or call JHU Museums You can receive discounts on tours at the Evergreen Museum and Library on North Charles Street and the Homewood Museum on the Homewood campus. If you are interested, volunteer opportunities are available at both and training is provided. Visit the Museums online at For more information, contact the museums Evergreen Museum: call Homewood Museum: call Johns Hopkins Club You are invited as a retiree to join the Johns Hopkins Club as a place to gather, dine and socialize. For more information go to or call JHU Sponsored Discounts As a retiree of JHU, there are certain JHU sponsored discounts for which you are eligible: Johns Hopkins Travel: Eligible for travel discounts when booked through the Johns Hopkins Travel Center call Wilmer Optical: Discounts on prescription eyewear call Recreation Center Membership: Discount to the O Connor Recreation Center call Blue Jays Lacrosse Tickets: Complementary tickets to home games call Johns Hopkins Press: Discount on Hopkins Press books

16 Special Events & Discounts There are many special events and discounts that you may be eligible to access. Go online to or call For more information on retiree programs and services available, please call or visit the Web site at 15

17 Disclaimer The information on this site (or any link herein) is a summary of the Benefit plans offered by Johns Hopkins University. Your eligibility for participation in any benefits under any plan or program described herein is subject to limitations and conditions outlined in the Summary Plan Descriptions and Plan documents. The actual provisions of each plan will govern if there is any inconsistency between this information and JHU s formal plans or contracts. This summary does not constitute a contract for any benefit; JHU reserves the right to modify or terminate its benefit plans, in order to reflect certain case law principles: including, but not limited to, the right to modify or terminate any retiree or post-employment health and welfare plans with respect to individuals already receiving benefits under those plans at the time of the modification or termination. Benefits Service Center 1101 E. 33 rd Street Suite D-100 Baltimore, Maryland benefits@jhu.edu